Pernambuco Awards Water and Sewage Concessions to BRK‑Acciona and Pátria in R$4.25 Billion Auction

Overview

• The auction at B3 in São Paulo concluded with four participants under a hybrid format limiting tariff discounts to 5% and using an outorga premium.
• BRK‑Acciona won the RMR‑Pajeú block covering 150 municipalities, including Recife and Fernando de Noronha, with a 5% tariff cut and R$3.5 billion in outorga, committing R$15.4 billion plus about R$320 million for production works.
• Pátria secured the Sertão block with a 5% discount and R$720 million in outorga, pledging R$2.9 billion plus R$453 million for adductor and integration projects, and said short‑term financing and equity are already in place via its Infraestrutura V fund.
• Combined outorgas total about R$4.2–R$4.25 billion with roughly R$19–R$19.2 billion in investments over contracts of about 35 years.
• Under the concessions, private operators will buy water from Compesa and handle distribution and sewage, with around R$1.4 billion of the outorga slated for municipalities and targets set for 99% water access, 90% sewage coverage, and losses cut to 25% by 2033.